XXEC Inc. Has $63.90 Billion Stock Position in Visa Inc. $V

Key Points

• XXEC Inc. dramatically increased its Visa stake by purchasing 186.1 million additional shares in the second quarter, bringing its holdings to 186.3 million shares worth approximately $63.9 billion—10.44% of Visa and 31.9% of XXEC’s portfolio.
• Visa reported strong quarterly results, with EPS of $3.32 and revenue of $11.63 billion, exceeding estimates and representing 14.4% year-over-year revenue growth. The company also authorized a $20 billion share-repurchase program.
• Analysts maintain a favorable outlook, with the stock carrying a consensus “Buy” rating and an average price target of $413.58. Visa shares opened at $371.09, near their 52-week high of $373.97.

XXEC Inc. raised its holdings in shares of Visa Inc. (NYSE:V - Free Report) by 153,118.8% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 186,260,448 shares of the credit-card processor's stock after buying an additional 186,138,883 shares during the quarter. Visa comprises about 31.9% of XXEC Inc.'s holdings, making the stock its 2nd largest position. XXEC Inc. owned 10.44% of Visa worth $63,904,097,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in V. George Kaiser Family Foundation purchased a new stake in shares of Visa in the 2nd quarter valued at about $564,000. Emerald Investment Advisers LLC grew its holdings in shares of Visa by 8.0% during the second quarter. Emerald Investment Advisers LLC now owns 30,635 shares of the credit-card processor's stock worth $10,511,000 after purchasing an additional 2,271 shares in the last quarter. Harber Asset Management LLC grew its holdings in shares of Visa by 18.3% during the second quarter. Harber Asset Management LLC now owns 25,750 shares of the credit-card processor's stock worth $8,835,000 after purchasing an additional 3,987 shares in the last quarter. Concord Investment Counsel Inc. increased its position in shares of Visa by 1.0% in the second quarter. Concord Investment Counsel Inc. now owns 22,642 shares of the credit-card processor's stock worth $7,768,000 after purchasing an additional 218 shares during the last quarter. Finally, EP Wealth Advisors LLC increased its position in shares of Visa by 12.1% in the second quarter. EP Wealth Advisors LLC now owns 359,913 shares of the credit-card processor's stock worth $123,483,000 after purchasing an additional 38,749 shares during the last quarter. 82.15% of the stock is currently owned by institutional investors.

Insider Activity

In related news, CEO Ryan Mcinerney sold 10,490 shares of Visa stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $343.99, for a total value of $3,608,455.10. Following the transaction, the chief executive officer owned 15,174 shares in the company, valued at $5,219,704.26. This trade represents a 40.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Tullier Kelly Mahon sold 57,272 shares of the business's stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $364.97, for a total transaction of $20,902,561.84. Following the completion of the sale, the insider directly owned 49,662 shares of the company's stock, valued at $18,125,140.14. This represents a 53.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 90,759 shares of company stock valued at $32,375,779. Corporate insiders own 0.12% of the company's stock.

Visa Stock Performance

Shares of NYSE V opened at $371.09 on Friday. The stock's 50-day moving average is $353.73 and its 200 day moving average is $329.64. The stock has a market cap of $662.18 billion, a price-to-earnings ratio of 31.56, a P/E/G ratio of 1.99 and a beta of 0.74. Visa Inc. has a 1-year low of $293.89 and a 1-year high of $373.97. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.60.

Visa (NYSE:V - Get Free Report) last issued its earnings results on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.23 by $0.09. Visa had a return on equity of 67.68% and a net margin of 50.78%.The business had revenue of $11.63 billion during the quarter, compared to analyst estimates of $11.40 billion. During the same quarter in the prior year, the firm earned $2.98 earnings per share. Visa's revenue for the quarter was up 14.4% on a year-over-year basis. On average, sell-side analysts anticipate that Visa Inc. will post 13.16 EPS for the current fiscal year.

Visa declared that its board has approved a stock buyback program on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the credit-card processor to buy up to 3.6% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Visa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th will be issued a $0.67 dividend. This represents a $2.68 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Tuesday, August 11th. Visa's payout ratio is presently 22.79%.

Analyst Ratings Changes

A number of brokerages recently weighed in on V. Oppenheimer reaffirmed an "outperform" rating and issued a $403.00 target price (up from $391.00) on shares of Visa in a research note on Wednesday, April 29th. TD Cowen reissued a "buy" rating on shares of Visa in a report on Wednesday, July 29th. Evercore set a $350.00 price objective on shares of Visa in a research report on Wednesday, April 29th. BMO Capital Markets raised their price objective on shares of Visa from $387.00 to $405.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating and set a $432.00 price objective (up from $412.00) on shares of Visa in a report on Thursday, July 30th. Seven analysts have rated the stock with a Strong Buy rating and twenty-four have given a Buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $413.58.

Visa Profile

Visa Inc is a global payments technology company that facilitates electronic funds transfers and digital commerce by connecting consumers, merchants, financial institutions and governments. The firm operates one of the world's largest payment networks, providing processing, authorization, clearing and settlement services for credit, debit and prepaid card transactions. Visa's network-based model enables partner banks and other issuers to offer branded payment products while Visa focuses on the infrastructure, standards and technologies that move money securely and efficiently around the world.

Visa's product and service portfolio includes card-based payment products for consumers and businesses, real-time push-payment capabilities, tokenization and authentication services, fraud and risk-management tools, data analytics and APIs for fintech and merchant integration.

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